Urbantech Index Q1 2026 – Key Insights

Axeleo Capital (AXC) publishes the latest edition of its “Urbantech Index”, a quarterly review of the European Urbantech ecosystem that monitors the pace of investments and innovation in Urbantech SaaS in Europe. This analysis focuses on B2B SaaS startups across the Energy, Construction (Contech), and Real Estate (Proptech) verticals in Europe.

Quantitative Insights

European Urbantech SaaS secured €501 million across 31 deals in Q1 2026. While the total amount invested is significantly higher than Q4 (€501M vs. €191M), the number of transactions decreased, signaling a substantial increase in average ticket size. This dynamic was notably driven by the large round raised by Mews (€280M), which significantly lifted total funding volumes for the quarter. Early-stage activity accounted for 55% of deals (Pre-seed and Seed), reflecting a still strong innovation pipeline but a more balanced stage distribution compared to previous quarters.

Zooming out, Q1 2026 confirms the resilience of the European Urbantech ecosystem, with a strong rebound in invested capital - partly driven by a few large transactions - and sustained deal activity despite a more selective investment environment.

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Geographical breakdown: UK leading, followed by Germany and Southern Europe

The UK was the most active market this quarter with 7 deals, followed by Germany with 5 transactions. Southern and Northern European ecosystems also showed solid activity, with Spain recording 4 deals and Finland 3. 

Overall, deal activity remains fairly spread across Europe, although the UK and Germany continue to lead the ecosystem.

Energy and Construction Lead Category Activity

Top funded Urbantech categories in Q4 2025 were:

• Energy management (18%)
  
  
• Construction operations (18%)
  
  
• Energy optimization & grid (13%)
  
  
• Real Estate & data visualization (13%)
  
  
• Property & Asset management (13%)
  
  

Together, Energy-related solutions continue to dominate, capturing nearly half of total funding (48%) and confirming strong investor appetite for efficiency, resilience, and infrastructure digitization.

Early-Stage Momentum Continues

Early-stage rounds (Pre-seed and Seed) made up 55% of total deals, with 12 Seed and 5 Pre-seed rounds completed this quarter.

Top Deals of the Quarter

• Mews (NL) – €280M

Hospitality management platform providing cloud-based property management systems for hotels and accommodation providers.

• Entrix (DE) – €43M

Software platform optimizing energy assets and enabling participation in flexibility markets.

• METIUNDO (DE) – €40M

Software platform for the operation, optimization, and trading of energy storage and renewable energy assets.

• Foresight Works (UK) – €23M

Digital solutions for construction project planning and execution.

• Cloover (DE) – €21M

 Financing platform supporting the deployment of renewable energy assets.

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Diversity Remains a Challenge

Only 4 deals this quarter involved at least one female founder, a modest step forward but still reflecting the structural lack of diversity in founding teams across Urbantech, especially at later stages.

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Exit Activity

Q1 recorded 6 exits, reflecting continued M&A activity as well as the progressive maturation of the European Urbantech ecosystem.

Notable transactions included:

• KleanApp (DE) acquired by Zvoove (DE) – Real Estate
• Monadd (UK) acquired by Bunch (UK) – Real Estate (Pre-seed exit)
• Spares in Motion (UK) acquired by Havn Capital (NO) – Energy & Environment
• Acre (UK) acquired by ClearScore (UK) – Real Estate (Seed exit)
• PolyProject (SE) acquired by Duroc (DE) – Energy & Environment

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Methodology: 

The Urbantech Index is based on data from Axeleo Capital analysis as well as external data sources,  such as Crunchbase. These data sources mainly gather information on deals and  rounds that have been publicly disclosed - many other raises are taking place, but without  announcements or communications on amounts (thus difficult to track). The analysis is limited to SaaS companies headquartered in Europe, and with a value proposition focused on Construction, Real Estate and Energy. As far as recorded fundraising is concerned, this refers to equity venture capital  fundraising only (i.e. excluding debt fundraising, subsidies and aid other than equity). 

About Axeleo Capital: 

Axeleo Capital is a venture capital firm active on the  European technology scene and backed by a large pool of entrepreneur-investors. The fund offers founders a unique support framework that combines equity investment,  operational and strategic coaching and an active ecosystem of over 100 high-level partners  and mentors. Its Urbantech investments include Garantme, Check&Visit, Beanstock, Monga, Pionix or Offroad.

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